MADRID—U.S.
stock futures pointed to a higher opening on Tuesday, potentially
allowing Wall Street to build on a strong prior-day performance, driven
by more upbeat Chinese data and hopes that military action over Syria
can be avoided.
Investors are also looking ahead to the expected unveiling of new iPhone models from Apple Inc.
About three hours before the start of trading, Dow
Jones Industrial Average futures rose 76 points, or 0.5%, to 15112,
while those for the Standard & Poor's 500 index gained 7.5 points,
or 0.5%, to 1676.60. Futures for the Nasdaq-100 index rose 17 points, or
0.5%, to 3182. Changes in futures don't always accurately predict early
market moves after the opening bell.
Markets continued to ride a wave of optimism over hopes military intervention over Syria can be avoided. Europe and Asia stocks were higher, while the Dubai Financial Market general index rallied nearly 8% on Tuesday.
On Monday the S&P 500 extended its longest winning streak since July and the Dow industrials had its best performance in more than eight weeks after Secretary of State John Kerry suggested that Syria could avoid a U.S.-led attack if it handed over its chemical weapons to the international community for destruction.
Russia declared its support for this proposal and Syria also reportedly welcomed the suggestion. President Barack Obama, who is due to make a prime-time address to the nation on Tuesday evening, said in a series of television interviews on Monday that he wasn't "confident" that Congress will authorize a strike on Syria. He also said it would be a breakthrough if the country agreed to give up its chemical weapons.
"The back-down by President Obama has lifted risky assets, as it's seen to reduce the potential geopolitical risk. This, combined with oversold condition leading into this week, has created a nice bounce," said Steen Jakobsen, chief economist at Saxo Bank.
Gold and oil prices pulled back on the potential aversion of a military action in Syria, while the dollar steadied.
"The prospect of strikes in Syria, potentially leading to the involvement of other countries in the region, has weighed heavily on risk appetite over the last couple of weeks, with investors pulling money out of stocks and other risky assets in favor of safe havens, including gold," said Craig Erlam, market analyst at Alpari, a foreign exchange broker.
U.S. stock future and other markets were also lifted by Chinese data, which revealed a stronger-than-expected picture in August for retail and industrial sectors. Industrial production rose 10.4% from a year earlier, accelerating from July's 9.7% advance, while retail sales increased by 13.4% compared with August last year.
Apple will also be in the spotlight for investors. At an event set for Tuesday morning, the company is widely expected to unveil two new iPhone models and reveal a launch date for the iOS 7 mobile operating system.
Analysts are most interested on how much Apple plans to charge for a lower-cost new version of the iPhone, and suggest this will be crucial in turning sentiment on the stock.
Among other stocks in focus for Tuesday, shares of Pep Boys-Manny Moe & Jack could see pressure after the auto-parts retailer posted second-quarter results that fell short of Wall Street analysts' forecasts.
praveen sharma
pgdm ist
Investors are also looking ahead to the expected unveiling of new iPhone models from Apple Inc.
Markets continued to ride a wave of optimism over hopes military intervention over Syria can be avoided. Europe and Asia stocks were higher, while the Dubai Financial Market general index rallied nearly 8% on Tuesday.
On Monday the S&P 500 extended its longest winning streak since July and the Dow industrials had its best performance in more than eight weeks after Secretary of State John Kerry suggested that Syria could avoid a U.S.-led attack if it handed over its chemical weapons to the international community for destruction.
Russia declared its support for this proposal and Syria also reportedly welcomed the suggestion. President Barack Obama, who is due to make a prime-time address to the nation on Tuesday evening, said in a series of television interviews on Monday that he wasn't "confident" that Congress will authorize a strike on Syria. He also said it would be a breakthrough if the country agreed to give up its chemical weapons.
"The back-down by President Obama has lifted risky assets, as it's seen to reduce the potential geopolitical risk. This, combined with oversold condition leading into this week, has created a nice bounce," said Steen Jakobsen, chief economist at Saxo Bank.
Gold and oil prices pulled back on the potential aversion of a military action in Syria, while the dollar steadied.
"The prospect of strikes in Syria, potentially leading to the involvement of other countries in the region, has weighed heavily on risk appetite over the last couple of weeks, with investors pulling money out of stocks and other risky assets in favor of safe havens, including gold," said Craig Erlam, market analyst at Alpari, a foreign exchange broker.
U.S. stock future and other markets were also lifted by Chinese data, which revealed a stronger-than-expected picture in August for retail and industrial sectors. Industrial production rose 10.4% from a year earlier, accelerating from July's 9.7% advance, while retail sales increased by 13.4% compared with August last year.
Apple will also be in the spotlight for investors. At an event set for Tuesday morning, the company is widely expected to unveil two new iPhone models and reveal a launch date for the iOS 7 mobile operating system.
Analysts are most interested on how much Apple plans to charge for a lower-cost new version of the iPhone, and suggest this will be crucial in turning sentiment on the stock.
Among other stocks in focus for Tuesday, shares of Pep Boys-Manny Moe & Jack could see pressure after the auto-parts retailer posted second-quarter results that fell short of Wall Street analysts' forecasts.
praveen sharma
pgdm ist
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